OFFICIAL LIQUIDATOR, SUPREME BANK LTD. vs P. A. TENDOLKAR (DEAD) BY L. RS. AND ORS.

The Supreme Court held that the misfeasance proceedings against the heirs of deceased directors are not maintainable under Section 235 of the Companies Act, 1913, as the proceedings are governed by the specific provisions of Section 45(O) of the Banking Companies Act, 1949. The Court clarified that the period of limitation for claims against directors is 12 years from the accrual of claims, as amended by Act 33 of 1959. The appeal was allowed in part, affirming the liability of the managing director while dismissing the claims against the heirs of deceased directors.